This post covers Square's three key tools for enhancing payment authorization rates and reducing fraud.
•3DS Data Only protocol enables behind-the-scenes data sharing between Square, card networks, and issuing banks, improving decline rates by 220 basis points without adding checkout friction or shifting chargeback liability
•Capital One Direct Data Share (DDS) provides real-time transaction data sharing before authorization, resulting in a 50 bps decline rate improvement for Capital One card payments
•Proof of Work (PoW) validation is applied to online checkouts to deter carding fraud by imposing computational requirements on payment attempts
•Browser fingerprints are recorded for all customers on Square online storefronts as an additional layer of fraud detection
•All three solutions operate in the background, keeping the customer experience seamless while improving payment success rates
